Why New York Community Bank put less money into multifamily lending last year

Signature Bank and New York Community Bank both saw their year-over-year commercial real estate lending decrease in New York City in 2016, which makes sense given that multifamily lending – the focus of the commercial real estate portfolios of both local NYC banks – dropped even more than overall commercial real estate lending in that time.

But though the multifamily origination by both lenders might have been expected to decline by roughly the same rate, that’s not what happened.

Rather, Signature’s multifamily lending decreased 13%, 10 percentage points below the overall multifamily drop, while NYCB’s went down 53%, 30 percentage points below, according to a recent CrediFi report. Signature issued $3.7 billion in multifamily loans in 2016, compared with $2.6 billion for New York Community.

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